Why Bankruptcy Offers No Relief to Those Trapped By Student Loan Debt

May 15, 2012

In this Tuesday, April 24, 2012 photo, Sarah and Devin Stang sit on the porch of the home they are renting in LaGrange, Ohio. The Stangs filed for bankruptcy and lost their Sandusky, Ohio home to foreclosure, but due to a 2005 lawÂ their student loan debts are still not dischargeable. (AP Photo/Mark Duncan)

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Bad luck does not discriminate, and medical catastrophe, job loss and divorce lead to financial problems for people with student loan debt too. How and why a 2005 federal law forbids a fresh start for student debt during bankruptcy is the subject of a worthy examination by the Associated Press.

It’s another look at how the youngest Americans face a more uncertain financial future than their elders, a theme captured brilliantly by comedian Albert Brooks in “2030″, his first novel. In that futurist vision of a possible hell, young impoverished Americans rebel against senior citizens who live in gated communities and hoard their assets. More to come on that thread as I finish reading “2030″ at home. I think a movie treatment could make “The Hunger Games” look like a picnic.

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However you define this “new age of austerity,” the fact is that we have less to spend and are now redefining our standards of living. How we come to terms with new economic realities and our hopes that our children can realize a middle class lifestyle is an important conversation, one the Courier-Journal hopes to lead. Courier-Journal journalist Jere Downs reports, writes, and tracks down the information that all of us need to raise our standard of living. The granddaughter of an auto worker and a witness to the decline of the middle class in her native Detroit, Downs is a longtime business writer, and graduate of the Columbia University Graduate School of Journalism.• Contact Jere with story ideas or feedback

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Why Bankruptcy Offers No Relief to Those Trapped By Student Loan Debt

Bad luck does not discriminate, and medical catastrophe, job loss and divorce lead to financial problems for people with student loan debt too. How and why a 2005 federal law forbids a fresh start